The stock market is slowly but surely looking like it might actually be on the recovery. But there is a warning to be had here. During the pandemic, many investors flooded growth stocks only to see them fall during periods of volatility, especially the bear market. Today, I’m focusing on safety through passive income.

Passive income is earned no matter what you’re doing, whether it be sleeping, eating, or taking a “bathroom break.” Today, we’re going to look at creating a diversified set of passive-income streams — ones that can set you up for life and take your portfolio to the next level.

Don’t do side hustles

If you’re already into side hustles, get out of them. Unless you’re hoping to turn this into your full-time job, a side hustle is simply taking away from your day job. Put that energy into your day job and work on getting a promotion. That alone could create far more passive income than a side hustle will.

Even better, if you’re not happy at your job, change it! A survey out of the United Kingdom found that those who changed jobs every two or three years saw an average 9% increase in their salary. So, work on your skills as your day job, and if you’re not getting the money you deserve, find another job that will!

Unless you’re really struggling day to day and drowning in debt, consider that extra cash flow as passive income. It’s money you worked for, sure, but it’s extra cash on top of what you were already earning. Then pop that extra amount into a Tax-Free Savings Account (TFSA) each month rather than increasing your daily spending.

Create real passive income

Now, if you don’t have a side hustle nor have plans of finding a new job (or it’s taking a while), there are still ways to create passive income right now. That would be setting up a few passive-income streams that won’t cause stress or take away from your day job.

Consider your car, for instance. If you’re driving to work every day, consider renting out your parking spot and undercutting local monthly rates. This could bring in hundreds, depending on where you live, each and every year.

Carvertising is another way to earn money from just driving around! The bigger the car, the more advertising you can fit. You then become a driving billboard. Finally, consider doing pick-ups and deliveries at places you already go to! If you’re headed to the grocery store, companies like Instacart will pay you to pick up an order while you’re there! These are just some examples that won’t take away from your day job and help you earn thousands a month.

Invest it!

Of course, you knew this was coming. Once you’ve created all that passive income, the best way to earn more is by investing it. This can certainly yield high results right now with the market recovery. Some great examples would be to identify companies that have a high yield right now and due to rebound in a bull market.

For example, Brookfield Renewable Partners (TSX:BEP.UN) is a great option. The renewable energy stock has seen its share price dwindle, as the company deals with higher interest rates, foreign exchange, and fair-value losses. However, in the long term, it’s set to climb higher as it continues to diversify its energy assets. Further, it’s creating partnerships supported by governments around the world. So, in a bull market, shares should certainly start climbing.

For now, you can grab a dividend yield at 5.52%, with shares still down 13%. Moreover, it offers immense value trading at 1.4 times sales, 1.44 times book value, and 12.25 enterprise value over earnings before interest, taxes, depreciation and amortization. And with just 86% of equity needed to pay off all debts, it’s a great option on the market right now. So, don’t wait around; take advantage of these passive-income streams today.

The post 3 Passive-Income Streams That Will Take You to the Next Level appeared first on The Motley Fool Canada.

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* Returns as of 11/14/23

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Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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